California Gov. Gavin Newsom has signed a law into place that requires restaurants and food businesses to give permission before being placed inside a third-party food delivery app. Many restaurants and food businesses have expressed concerns about being added to third-party delivery apps. without their permission. Now GrubHub, DoorDash, Uber Eats, Postmates and other third-party food delivery apps. must obtain “an agreement with the food facility expressly authorizing the food delivery platform to take orders and deliver meals prepared by the food facility.”
“Postmates put us on their platform without our permission. They have our first menu from over four years ago, with outdated menu items and prices,” said Susan Park, a co-owner of Revolutionario North African Tacos. “Grubhub recently added us to their app. We used to be with them before, with our permission, but early last year, we told them to take us off. Then about a month ago, Grubhub drivers started showing up with orders. They looked very confused and we were confused. We refused the early orders. But then decided to take them after we figured out what was going on.”
California Assemblywoman Lorena Gonzalez has pushed the legislation. She was concerned that large technology companies were taking advantage of small retailers. She recognized that app-based food delivery companies have aggressively emerged on the scene and disrupted the foodservice industry. California restaurant owners often discover these apps offering their food for delivery to customers even when they never agreed to the service.
“This bill levels the playing field for small businesses by empowering mom-and-pop restaurants to have a say in whether delivery app. companies can deliver food to their customers,” she said.
She introduced the bill prior to the pandemic, but observed the greater reliance on third-party apps. after the start of COVID 19. She hopes the new law will help protect the small business owners.